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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
The Importance of Information Systems Management, 8e (McNurlin/Sprague/Bui)
Chapter 4 Information Systems Planning
1) Planning is the development of a view of the future to make better decisions in the future.
2) Planning is defined as stating the direction you want to go and how you want to get there.
3) Operational plans are usually a year or less in duration.
4) Strategic plans present a vision of the organization and are the primary responsibility of
senior management.
5) Tactical plans are usually developed by the CIO and involve project selection and resource
allocation.
6) IT planning needs to be a continuous process because technology changes so quickly.
7) Infrastructure projects are easy to justify because they establish the architecture for the entire
organization.
8) Mainframe technology in the Nolan and Gibson growth cycle would be considered at the
control stage.
9) The contagion stage in the Nolan and Gibson growth cycle is the beginning use of a new
technology.
10) A critical success factor is a key area that must go right for an organization to be successful.
11) Product differentiation is the only strategy that has proven effective in dealing with the
competitive forces model.
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
12) The third force in the Porter Competitive Forces model is the bargaining power of
intermediaries.
13) The fourth force in the Porter Competitive Forces model is substitute products or services.
14) Creating a strategy that utilizes electronic channels between organizations is referred to as
electronic analysis planning.
15) The goal of scenario planning is to explore the forces that could cause different futures to
take place then decide on actions to take.
16) The first stage of the Nolan and Gibson Growth model requires technology proliferation to
be controlled.
17) Management planning is usually defined in three forms; strategic, governance, and
operational.
18) Strategic systems plans do not need to specifically align with business goals, but strategic
plans need to support business goals.
19) Developing an infrastructure is crucial to achieving business goals.
20) When considering competitive strategy, organizations must acknowledge that the threat of
substitute products or services is due to rivalry among existing firms.
21) Scenario planning is limited by its fixed time frame analysis.
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
22) Which type of planning is typically performed by line managers?
A) strategic
B) tactical
C) operational
D) linkage analysis
23) Which type of planning is responsible for establishing the vision and business goals of an
organization?
A) strategic
B) tactical
C) operational
D) linkage analysis
24)
Which of the following is not a reason why systems planning is so difficult?
A) the stable technological environment
B) the need for project portfolios
C) the need to involve all top managers
D) the alignment of business goals and system plans
25) Which of the following is a stage of the Nolan and Gibson growth stage model?
A) Early successes
B) Contagion
C) Integration
D) All of the above
26) This stage of the Nolan and Gibson growth stage model is characterized by uncontrolled
growth and rapid rise in the use of IT.
A) Early successes
B) Contagion
C) Integration
D) Control
27) Which of the following is true of CSFs?
A) CSFs focus on individual managers and their information needs.
B) CSFs can help identify information systems needs.
C) CSFs define what must go right for an organization to be successful.
D) All of the above
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
28)
Which of the following is not a source for the development of critical success factors?
A) the industry that the company operates in
B) the company itself
C) the political factors of the countries that the organization resides in
D) All of the above
29)
Which of the following is not a part of Porter's Competitive Forces model?
A) threat of new entrants
B) disintermediation
C) bargaining power of suppliers
D) None of the above
30) Which of the following Competitive Forces is impacted by the Internet?
A) substitute products or services
B) bargaining power of buyers
C) intensity of rivalry among competitors
D) All of the above
31) Which strategy is used to deal with Porter's competitive forces?
A) low cost producer
B) product differentiation
C) focus on a niche segment
D) All of the above
32) The most widely quoted framework for thinking about the strategic use of IT is:
A) Linkage Planning Analysis.
B) Scenario Planning.
C) Competitive Forces Model.
D) Stages of Growth Model.
33) Which of the following focuses on adding value to primary and supporting business
activities?
A) Linkage Planning Analysis
B) Value Chain Analysis
C) Competitive Forces Model
D) Stages of Growth Model
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
34) Which of the following focuses on project portfolio management?
A) Linkage Planning Analysis
B) Scenario Planning
C) E-Business Value Matrix
D) Value Chain Analysis
35) The goal of Scenario Planning is:
A) to predict the future.
B) to explore forces that could cause different futures and decide on actions if those forces
materialize.
C) Both A and B
D) Neither A nor B
36) Strategic planning is defined as:
A) having a significant impact on an organization.
B) having a significant, long-term impact on an organization.
C) having a significant, long-term impact on the revenue of an organization.
D) having a significant, long-term impact on the growth rate, industry, and revenue of an
organization.
37)
Which of the following is not part of Porter’s Competitive Analysis Model?
A) governmental regulatory power
B) threat of new market entrants
C) bargaining power of both buyers and suppliers
D) threat of substitute products or services
38) Having many small choices with short commitments is an example of:
A) an Internet-era planning strategy.
B) an Outside-in planning strategy.
C) a New-era planning strategy.
D) an Old-era planning strategy.
39) Business strategy consists of:
A) where the business going and why.
B) how value can be delivered.
C) what is required to deliver business value.
D) All of the above
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
40) When considering Nolan and Gibson’s’ information technology learning curve,
technological discontinuity was greatest during:
A) the Internet era.
B) the DP era.
C) the Network era.
D) the Micro era.
41) List five reasons why system planning is so difficult.
42) Describe the traditional strategy-making process.
43) Describe the four stages of Growth model.
44) Identify the Competitive Forces model and three appropriate strategies.
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
45) Discuss the contribution that the Value Chain model makes to systems planning.
46) Discuss the contribution that the e-business value matrix makes to systems planning.
47) Describe scenario planning.
48) List and describe the dominant technology in each of the three eras of the Nolan and Gibson
information technology learning curve. What is technological discontinuity?
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
49) According to Porter, in the new economy, technology has become the most important driver
of change. List and describe three emerging forces that will affect technology as described by
Porter.
50) What are the five primary activities of the Porter value chain?
